Employer Gone Bust? What About Your References?

Come Recommended

Oct. 3, 2011, 10:00 AM

"My company went out of business."

"My entire department was eliminated."

"I don't know what happened to my manager after I left, but he's not there anymore."

Sound familiar? Prospective employers want to do their homework on you. If one of the above scenarios is preventing a reference check, don't fret. It's not as big of a deal as you might think. Here's why:

1. For a high level reference check, you're incognito. While checking for record of previous employment, a prospective employer doesn't necessarily need to speak to your immediate manager, and wouldn't be able to reach them if they tried. In reality, most companies will adopt a minimalist strategy of 'verification and length of employment' when asked for a reference. This greatly reduces the risk of being sued for slander in providing a bad reference.

According to the Employment Law Advisor (October 2007), "Generally, any false statement that discredits or disparages an individual in the conduct of his or her trade or profession will be considered defamatory," and thus provides the basis for a slander lawsuit. State and federal laws prevent statements against former employees that are considered retaliatory or discriminatory.

2. There's always a paper trail. If your company is out of business and there is no HR department left to contact for a reference, you still have alternatives. Bank statements showing direct deposits will show a detailed length of time you worked at your previous employment. A W-2 will also show employment verification.

3. It's all about the customer, isn't it? If you have provided a service to a customer, they can provide a better, more comprehensive reference than an immediate supervisor in many cases. Customers are not bound by the same laws (see above) as employers, and can provide candid references to the quality of your work. Provide a long list of places where you were proud of what you did, and a general listing of the work performed for each customer. Your prospective employer will want to know how you represent yourself and your company in front of clients, and will appreciate your honesty and confidence in your work.

4. Professional references from co-workers carry a lot of weight. If you've worked on several project teams, contact some of those teammates in lieu of the manager you can't locate. Ask them for their permission to be a professional reference, and highlight your abilities and contributions you would like them to illustrate. You might also want to ask them what they thought were your best attributes. You might learn something about yourself.

Lastly, whenever possible, contact each of your references and let them know that they may be contacted and why. When you provide your references to your prospective employer, be confident in their sincerity and proud of the relationships you've built with each of them. It will speak volumes about your work ethic and provide an edge that other candidates may lack, and may just be the tipping point that lands you that next job.

Ever faced a difficult situation with references? Tell us your story in comments below.

Robert Petti is the Co-Founder and CEO of Resoomay, a cloud-based pre-screening tool that improves the job search process for recruiters and applicants. Connect with him and Resoomay on Facebook and Twitter.